Growth for MM in China

Italy’s Magneti Marelli aims for sales in China to equal 10 percent of total sales within three years, says president and CEO Eugenio Razelli.

Sales from China are currently about $100 million (about €72 million) annually, or less than three percent of total sales, he says.

Magneti Marelli has five manufacturing sites in three locations in China. It employs 800 people, says Razelli. In China, it produces powertrain components; exhaust products; electronic systems; and automotive lighting.

“Electronics, lighting, and powertrain will be the three business areas growing the fastest,” says Razelli.

Most of the increase will come from domestic sales, he says.

“The numbers include a bit of export,” says Razelli. The 10 percent figure does not include purchasing from China for Magneti Marelli’s worldwide operation, he adds.

New regulations in China such as stiffening emissions standards and consumers’ growing concern with safety will help Magneti Marelli increase its sales, says Razelli.

Razelli was in Shanghai to open a new Magneti Marelli office. It will principally house lighting products personnel.

As it expands in China, Magneti Marelli is willing to invest alone or through joint ventures with auto-makers or suppliers, he says. Until now, all of Magneti Marelli’s manufacturing in China has been through companies it fully owns.

Says Razelli: “First we wanted to establish a solid presence in China. Now we are willing to consider partnerships.”

Magneti Marelli ranked 30 on the Automotive News Europe top 100 global suppliers list with worldwide sales of $4.97 billion in 2006